I think you're right about the Receivables versus Payables, which should be good for cashflow - but not Inventory. According to their Balance Sheet the Stock on hand actually declined in the six months from 30/6/17 to 31/12/17. The $348k you refer to was an expense, possibly a write down of old inventory for obsolesence? They seem to be conservatively run so perhaps no surprise that they wrote off inventory that was over valued rather than leave it on the Balance Sheet.
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